MN Public Adjuster flashcards

31 cards. Read the term and the definition here. The deck at the top of this page is optional.

Minnesota insurance regulator

The Minnesota Department of Commerce licenses and supervises insurance producers, adjusters, and public adjusters, and enforces chapters 60A and 72A through the Commissioner of Commerce.

License term length

Minnesota insurance producer and adjuster licenses run for two years and expire on October 31 of odd-numbered years, requiring timely renewal to continue transacting business.

Continuing education requirement

Resident licensees must complete 24 credit hours per two-year term, including at least 3 hours of ethics, to renew a Minnesota producer or adjuster license.

Grounds for discipline

Misrepresentation, fraudulent claims practices, rebating, failure to remit premiums, and unlicensed activity are grounds for denial, suspension, revocation, or fines by the Commissioner.

Contested case hearing

A licensee facing administrative action may request a contested-case hearing before an administrative law judge under the Minnesota Administrative Procedure Act.

Address change reporting

A licensee must notify the Commissioner of Commerce of a change of name or business address within the period set by statute, and report disciplinary actions from other states.

Prelicensing education

Resident public adjuster applicants must complete the state-required prelicensing course before sitting for the licensing examination.

Public adjuster definition

A public adjuster is a person who, for compensation, acts on behalf of an insured to negotiate or settle a first-party insurance claim, distinct from company adjusters.

Basic applicant qualifications

A public adjuster applicant must be at least 18, complete prelicensing education, pass the examination, and submit a fingerprint-based criminal history background check.

Surety bond requirement

Public adjusters must post a surety bond in the statutory amount, conditioned on faithful performance and proper accounting for funds received on behalf of insureds.

Nonresident licensing

Nonresident applicants must hold a comparable public adjuster license in good standing in their home state and satisfy Minnesota reciprocity requirements.

Conflict of interest bar

A public adjuster may not simultaneously hold a company adjuster or producer license that creates a conflict of interest in the same claim.

Disqualifying convictions

A criminal conviction or prior license revocation that bars licensure under chapter 60K prevents issuance of a Minnesota public adjuster license.

License renewal

The public adjuster license is issued for the standard two-year term and must be renewed with continuing education credits, including ethics hours.

Reporting disciplinary actions

Licensees must report to the Commissioner any disciplinary action taken against them in another jurisdiction and changes to name or business address.

Written contract required

Before providing services, a public adjuster must obtain a written contract signed by the insured disclosing the fee or percentage and the calculation method.

Fee disclosure

Compensation must be reasonable and disclosed in writing, and the public adjuster fee is capped as a percentage of the insurance recovery under statute.

Cancellation right

The contract must disclose that the public adjuster represents the insured, not the insurer, and state the insured's statutory right to cancel within the specified period.

Contract copy delivery

The public adjuster must give the insured a copy of the signed contract at signing and retain records for the statutory retention period.

No advance of funds

A public adjuster may not advance funds to an insured or accept compensation tied to an undisclosed arrangement with a contractor or vendor.

Funds accounting duty

On settlement, the adjuster must account for funds received and promptly remit the insured's portion; commingling client funds with the adjuster's own funds is prohibited.

Settlement authorization

A public adjuster may not settle a claim without the insured's written authorization and must keep the insured informed of material developments.

Disaster solicitation limits

Solicitation rules bar contacting an insured during a declared disaster emergency before the statutory waiting period and prohibit misrepresenting the adjuster's authority.

Unfair claims practices

Chapter 60A prohibits misrepresenting policy provisions, unreasonable claim payment delays, failure to act promptly on communications, and offering unauthorized inducements.

Rebating prohibition

A public adjuster must not rebate, share commissions with unlicensed persons, or receive compensation from both the insured and insurer on the same claim.

Fiduciary duty

Funds received on behalf of an insured are held in trust, must be accounted for, and must be disbursed only as directed by the insured or law.

Confidentiality duty

An adjuster must protect confidential insured information and may not disclose claim details except as authorized by the insured or required by law.

Claims fraud

Knowingly presenting or assisting with a false or inflated claim is a crime and grounds for license revocation by the Commissioner of Commerce.

Accurate identification

An adjuster must not misrepresent license status, credentials, or relationship with an insurer, and must identify themselves accurately in all communications.

Market conduct cooperation

Licensees must keep records and cooperate with Department of Commerce market conduct examinations; obstruction or false statements to the Commissioner are violations.

Statutory framework

Minnesota Statutes chapter 72A governs the business of insurance, while chapter 60A contains the Unfair Insurance Practices Act and prohibited settlement practices.